Hook industries capital structure consists solely of debt


WACC and Percentage of Debt Financing

Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at r_d 9%, and its common stock currently pays a $2.25 dividend per share (D_0 = $2.25). The stock's price is currently $22.25, its dividend is expected to grow at a constant rate of 8% per year, its tax rate is 35%, and its WACC is 13.55%. What percentage of the company's capital structure consists of debt? %

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Financial Management: Hook industries capital structure consists solely of debt
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